Topic: You CANNOT trade successfully without RISK-MANAGEMENT (Read 987 times)
Cryptocurrency market is unpredictable. Using risk management will help you to minimize the loses, but it doesn't mean that you won't loose at all.
in fact having risk management is important because without thinking about risk and only thinking about profits, I think it's a mistake. some techniques already exist about risk management, only the application is still not able to be done by all traders, maybe because it is carried by the flow of profits, we forget the existing risk.
To some, doing risk management is the same as breathing.
They already know what's up so they focus on what they can and what they can't do. With the market that we have, I doubt that we can be successful without it. Also, we have our own risk management, we don't know it just yet. When we are doubting a certain investment so we make small investments for a start.
when we don't understand what going on in markets we should never risk more knowing position sizing is very important we cannot trade with same position size in all condition , when markets are bad try to minimise risks or don't trade don't watch also
use size in option is your analysis is right or size out if markets are not in your favour
use size in option is your analysis is right or size out if markets are not in your favour
I agree with you because the business will not be a loss if we do not fall behind If we see a lot of risks here then it is better to close the business for some time. Otherwise, you could lose all your money You can then restart by determining the cause of the damage But I think in business it is better to not use bots It is more likely to be risky.
I agree that saving is way harder than earning (my past trading experience always tells me so)
Sometimes we deeply understand the risk, but just don't really care about it and not manage the risk properly and when the bad time comes, we don't earn enough anymore and start losing capital.
Sometimes we deeply understand the risk, but just don't really care about it and not manage the risk properly and when the bad time comes, we don't earn enough anymore and start losing capital.
That is because we are not aware of the risk we are facing, we always says that in the things that we are doing, we are taking a risk in everything and we are ready for any losses, the thing is , we need to prepare not for having a loss but when the time comes that we already losing money, we need to have a plan on that too, whether should we stop trading or should we take the risk and try again, you choose.
What types and methods of risk management you use? Any software? What risk limits do you set?
Let's share
Let's share
Before I started trading, a good friend of mine told me to at least record my trading history especially the ones that I have accumulated lost with. It helps knowing on which part I made a mistake either by overlooking the said item or being overconfident about my gut.
One risk management that I learned over the course of my experience is to aim for small trades with relatively small profit. Although the profit may be low compared to medium to big trades, I consider it 'safe' as I always have a safety margin of my resources whenever I trade.
Market is unpredictable and minimize risk is important to save our asset, other benefits is make us stay realistic and disciplines with psychology trading. We can't avoid risk and manage it use stop loss, money management and investment program really helpful. Some people never use risk management and fail and that is not good story, use it so you can share and get solutions to change your strategy.
The market may be unpredictable but there are tools that may support your forecast in the market. If the market is too risky, avoid going for big trades especially if you are uncomfortable with it. Also one thing to note, only trade the amount that you are willing to lose.
What types and methods of risk management you use? Any software? What risk limits do you set?
Let's share
Let's share
Before I started trading, a good friend of mine told me to at least record my trading history especially the ones that I have accumulated lost with. It helps knowing on which part I made a mistake either by overlooking the said item or being overconfident about my gut.
One risk management that I learned over the course of my experience is to aim for small trades with relatively small profit. Although the profit may be low compared to medium to big trades, I consider it 'safe' as I always have a safety margin of my resources whenever I trade.
Market is unpredictable and minimize risk is important to save our asset, other benefits is make us stay realistic and disciplines with psychology trading. We can't avoid risk and manage it use stop loss, money management and investment program really helpful. Some people never use risk management and fail and that is not good story, use it so you can share and get solutions to change your strategy.
The market may be unpredictable but there are tools that may support your forecast in the market. If the market is too risky, avoid going for big trades especially if you are uncomfortable with it. Also one thing to note, only trade the amount that you are willing to lose.
Market is unpredictable and minimize risk is important to save our asset, other benefits is make us stay realistic and disciplines with psychology trading. We can't avoid risk and manage it use stop loss, money management and investment program really helpful. Some people never use risk management and fail and that is not good story, use it so you can share and get solutions to change your strategy.
After read the articles I agree with that even there's opportunity trader change their strategy because can't face unpredictable market, we call it psychology. Risk management is to control your lost limit and create experience about market volatility. No one will deny but I'm sure most trader enter market without it, even they have it they don't have good psychology, trader need both.
what you said are pure facts and that was right . all trader must need all of those you claim above so that they can adapt if what ever happen to the market , they can adapt if what changes on the market strikes . that was all part of the strategy . trading was risky but risk is manageable if you learned how to do so . you will only minimize your risk but the losses were still there . there isnt called a master on trading that can perfect his trades .
After read the articles I agree with that even there's opportunity trader change their strategy because can't face unpredictable market, we call it psychology. Risk management is to control your lost limit and create experience about market volatility. No one will deny but I'm sure most trader enter market without it, even they have it they don't have good psychology, trader need both.
what you said are pure facts and that was right . all trader must need all of those you claim above so that they can adapt if what ever happen to the market , they can adapt if what changes on the market strikes . that was all part of the strategy . trading was risky but risk is manageable if you learned how to do so . you will only minimize your risk but the losses were still there . there isnt called a master on trading that can perfect his trades .
Any investment which gives good returns also comes with risk so one who are tacking the issues well will make more reap.I just reduce my trading activities whenever there is uncertain condition on the bitcoin market,it doesn't make me lose on satoshi value so holding long the coins will give me the profits which equalize the loss if I met due to the price dumped.
Trades only thinking about profit because his mind has been overcome by greed without thinking about the risk of being a bad thing for example he has a profit opportunity but because his mind only thinks of big profits then he delays to take profits then next time the price changes down then the profit opportunity is lost that is an example of trading with a greedy strategy, so implementing risk management is important so as not loss
and to lose profit opportunities
This is a normal situation with most of the traders. We might wait for a specific price to reach even though the price already is in the dip but our greed makes us wait for the price to drop a bit more. But eventually, the price starts growing back which never gave you an opportunity to buy at the drip. In this case, you could properly study the graph by adding some oscillators to the graphs which would make it easy for you to understand the entry and exit points. Then find some better points to enter and name them Target1, Target2, etc.and to lose profit opportunities
Now, you can start learning more about trailing as it would help you in this situation. As soon as the price hits the Target1, your orders should be set to Target2 setting stop-loss to Target1. This will never miss you the opportunity to buy at an appropriate price.
It's also true that you said, we have to set target 1 or target 2 but I have failed when the market is bad due to lack of monitoring of market movements so I am late in making a decision to avoid defeat and as a trader it must have the ability to read the charts correctly and accurately because luck alone is not enough
I have my own capital management strategy and it's quite risky. It seems that in my margin trading orders I never use stoploss. I learned about TA and realized that when its price reached the threshold and was about to reverse, I would enter the order. I don't use stoploss but only play for very small amounts, for example I have $ 100 then I only use $ 5 to bet. People often say I'm crazy but I don't think so. so many people have lost money because they put stoplosss too short and were hunted by sharks. so the strategy is to play with a small capital but hold a long position. The profit will certainly be greater than ever.
Trading without a stop loss is very risky and installing a stop loss too short is not a strong reason for that. When you put a stop loss too short then your trade analysis is still weak which means you still don't understand market movements. I think it's better to put a stop loss while learning from experience why the boundary you are bouncing back on, then later you will find the answer to your trading error trial, don't be someone who doesn't want to develop, dude.
risk management must be owned by every trader, because this is one of the keys to success, of course we will be more careful every time we take action (buy, sell, or hold). I don't like using any software, just the classic trading that I always use. install three stages of buy order to avoid large dumps (that's it). at risk, there are usually benefits (i like it)
As long as it’s business that you’re talking about if you don’t know how to manage your risks then you’re likely to fail. Risks management is very important and will help your business to grow. And like you have said, trading bots are also not 100% reliable, you can lose your money. Some people sees trading bots as something that will make them make steady profit but that is not true.
There are also free trade bots and those ones are the worst, paid bots are the ones that are a bit better, but they still don’t make any sense because the losses you will see will be more than profit, so it’s better to do it yourself.
There are also free trade bots and those ones are the worst, paid bots are the ones that are a bit better, but they still don’t make any sense because the losses you will see will be more than profit, so it’s better to do it yourself.
Trades only thinking about profit because his mind has been overcome by greed without thinking about the risk of being a bad thing for example he has a profit opportunity but because his mind only thinks of big profits then he delays to take profits then next time the price changes down then the profit opportunity is lost that is an example of trading with a greedy strategy, so implementing risk management is important so as not loss
and to lose profit opportunities
This is a normal situation with most of the traders. We might wait for a specific price to reach even though the price already is in the dip but our greed makes us wait for the price to drop a bit more. But eventually, the price starts growing back which never gave you an opportunity to buy at the drip. In this case, you could properly study the graph by adding some oscillators to the graphs which would make it easy for you to understand the entry and exit points. Then find some better points to enter and name them Target1, Target2, etc.and to lose profit opportunities
Now, you can start learning more about trailing as it would help you in this situation. As soon as the price hits the Target1, your orders should be set to Target2 setting stop-loss to Target1. This will never miss you the opportunity to buy at an appropriate price.
It's also true that you said, we have to set target 1 or target 2 but I have failed when the market is bad due to lack of monitoring of market movements so I am late in making a decision to avoid defeat and as a trader it must have the ability to read the charts correctly and accurately because luck alone is not enough
A good backup plan or you can say the plan B of trading is very compulsory. Trading is not traditional as other jobs. In this you do not always get what you actually think about. Instead of crying on our lose and completely blank mind you should use extra precaution and be more intelligence in the time of loss. The decision made at that time would predict your future, if you have a positive plan B, may be that return your whole loss, if you will sit blankly, mourning on your loss that would break your heart permanently from trading.
Yes, we should always have a plan B in case we need to face any loss. There always should be a backup plan which would save our money in case we are on an edge to have loss. Proper money management would always help us from facing higher losses as we would only loose the money we have excluded for a particular coin.Markets are highly volatile which would never guarantee you profits but would also keep a constant risk of having loss and a back-up plan in this situation would be a life saver one. You could instantly change your trade if the price starts dropping by implying some of the useful strategies which would never make us bear any loss.
I like to set rules for myself in trading such as never place a buy order will all my money. Only use 20% for a buy and save the rest for leverage in case the price drops.
Every traders creating some different rules personally. But without risk management ultimately you cannot protect your loss. I agree that never used all of amount in one trade, i will spend 50% to 60% amount to buy coins. I following risk management if i am not a professional traders, i started from last year.
Risk management is very important to help reduces your loss in short term or long term trade.
I like to set rules for myself in trading such as never place a buy order will all my money. Only use 20% for a buy and save the rest for leverage in case the price drops.
Every traders creating some different rules personally. But without risk management ultimately you cannot protect your loss. I agree that never used all of amount in one trade, i will spend 50% to 60% amount to buy coins. I following risk management if i am not a professional traders, i started from last year.
Risk management is very important to help reduces your loss in short term or long term trade.
I like to set rules for myself in trading such as never place a buy order will all my money. Only use 20% for a buy and save the rest for leverage in case the price drops.
Every traders creating some different rules personally. But without risk management ultimately you cannot protect your loss. I agree that never used all of amount in one trade, i will spend 50% to 60% amount to buy coins. I following risk management if i am not a professional traders, i started from last year.
Risk management is very important to help reduces your loss in short term or long term trade.
Jump to: